Since I began writing this column in April of 2021, the most common question I get is, “Why are we shrinking?” Many people are quick the lay the blame on any number of local factors, but in my first column, I cited ten primary reasons from my research over the years, which are listed below:
- Rapid industrialization during and after WWII
Small town America led the nation’s growth until 1941, when we ramped up the war effort. Factories were built in large cities near a concentration of the supply of labor, and urbanism began.
- Change in tax policies to promote manufacturing
With the need to build our war machine came tax incentives from Washington in the form of tax credits and accelerated depreciation to benefit primarily these large city manufacturers; this began the great tax transfer from small town earners to large city companies. Additionally, the Federal Government is the largest employer in Kansas City. How many Federal workers do you know who live in Bourbon County?
- Agricultural efficiencies and the drop of ag employment
Most of us are aware that it takes far fewer agricultural workers to produce a crop and manage a herd. Ag employment per acre has dropped precipitously over the last 75 years.
- Rapid transportation: planes, trains and automobiles
Our mobile society makes it much easier for our young people to seek employment is faraway places, primarily big cities near transportation centers.
- Global competition created the need for economy of scale
Due to technology, the world is much smaller now, making it easier for companies to go nationwide/global. To create efficiencies, industries have consolidated, as evidenced by the over 15,000 banks 40 years ago, condensed to 4,519 at yearend 2020.
- Increase in regulation
New government regulations, such as the Patriot Act, have dramatically increased the cost of doing business, crowding out mom and pop companies in small towns.
- Advent of “Big Box” retailers
Wal-Mart. Need I say more?
- Access to technology/online shopping
The Internet has revolutionized the world, and retail has paid the price. This has disproportionately impacted small town America.
- Loss of desire for community
We are devolving from a relationship culture to an entertainment culture. Give me experiences! There is nothing to do here! We are becoming human doings, instead of human beings.
- Entertainment culture
Who are our highest paid citizens? It is those who entertain us, who seldom live in small towns. In a capitalist society, money flows toward what we value.
There are more, but these are megatrends that have strangled small towns, through no fault of their own. Other than the energy sector areas, the trends are impacting small towns universally and disproportionally.
In many ways, we are a victim circumstances we cannot control. We can put our best foot forward and distinguish ourselves from other small towns around us who suffer the same fate. There is no quit in me in an effort to preserve the lifestyle I grew up with